Neptune Gourmet Seafood Case Study

Executive Summary

Company Overview

Neptune Gourmet Seafood is North America’s third largest seafood producer who is able to reach out to extremely demanding consumers through various channels. One of the company’s major products is its 30% higher price point, Neptune’s Gold. Neptune Seafood’s competitive advantage in being able to invest in new technologically advanced freezer trawlers really made a positive impact for the company. Neptune’s mission statement, to have the best seafood on the water planet, proved true. During the past 40 years, Neptune had earned a reputation for producing the best seafood. As a result of that, the company did everything in their power to maintain that reputation of being premium in the eyes of their customers.

Major Issues

Although Neptune is the best seafood on the water planet, the company is experiencing several major issues. The major issues consists of: (1) excess of inventory worth 60 days’ supply with the Neptune Gold seafood product line, (2) producing high quality products having 30% higher price, (3) the company has an image to maintain, and (4) 10% decrease in revenue because of rising costs and growing competition compared to the year before.

To resolve the issue, the company needs to get rid of all the seafood without losing a large amount of money and at the same time, avoid ruining the premium brand name. Alternatives were given to offset the issues, but the decision whether to remain a class-market brand or to launch a mass-market brand remained questionable.

Alternatives and Its Effects

Alternatives to Issues

• 40-50% price reduction OR a 10%